Airbnb is a great way to find cheap accommodation if you're travelling, or to make some cash if you're a property owner. If you fall into the latter category, the company just released a tool that makes it easier for you to earn more from your rental property.
Dubbed Price Tips, the tool tells owners how much they can charge based on room demand, local events and rental prices for hotels. Airbnb explains:
You can see daily price tips that use what the model learns about the likelihood of your space getting booked on each available night. When you see a tip, the model gives you insight on whether you could earn more money while maintaining your likelihood of getting booked, or you could increase your likelihood of getting booked by lowering your price.
It's good news for owners, but it's not entirely bad news for renters. The tool may inspire some owners to lower their prices, making more rooms available. Airbnb says owners are four times as likely to book a room when they select a price within 5% of their price tip, compared to hosts who price more than 5% away from their tip. Their VP of engineering told TechCrunch:
In lot of cases it's someone typing in a number and hoping for the best. It's one of the biggest points of friction in the startup process, and worse than knowing what to price is understanding how that price should evolve over time.
To read more about the tool, head over to the link below.